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Befesa receives confirmation of it having been awarded the Tenes Desalination Plant Contract in Algeria

April 24, 2008

Madrid, April 24, 2008. – The Algeria state-owned company, Algerian Energy Company (AEC), has ratified the award of the design, construction, financing and 25-year operation of the Tenes-Chlef seawater desalination plant project to Befesa Agua.

The investment for construction of this plant, to be built in the Algerian city of Tenes (Chlef region), located on the Mediterranean coast some 200 kilometers from the capital Algiers, is more than 232 million dollars. Its production capacity, utilizing reverse osmosis technology, will be 200,000 cubic meters per day, sufficient to enable supply to a population of 800,000.

Befesa will execute the project under the DBOOT (Design, Build, Own, Operate and Transfer), modality within the framework of a Hispanic-Algerian mixed company, in which it will hold a 51 percent stake, while the remaining 49 percent will be controlled by Algerian Energy Company. The project will be 80 percent financed by Algerian banks, including Credit Populaire d’Algerie (CPA), and the other 20 percent by Befesa and AEC.

Both the design and turnkey construction of the plant, as well as 25-year operation of the same will be 100% responsibility of Befesa Agua. Earnings from water sales over this period will be more than 50 million dollars a year, representing total earnings in excess of 1,400 million dollars.

According to Befesa’s chairman, Javier Molina, “the award of this important contract consolidates Befesa’s position as a leading company in desalination in Algeria”.

The activity of Befesa, Abengoa’s environmental services subsidiary, focuses on providing environmental services for industry and construction of environmental infrastructures. It is a listed company that closed the 2007 financial year with share capitalization of more than 550 million euro (

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